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In the midst of the entire media blitz surrounding F&N as well as Sakari’s takeover, it is quite possible that the prospective listing of Ezra’s TRIYARDS on the SGX might have been just a small blip on your radar. But truly, the proposed listing of TRIYARDS by way of introduction (we will get to that shortly), can be seen as an opportunity for the retail investment public to grab a hold of. Ezra, by itself, is already making great strides in terms of financial performance. At least that is what analysts think, 4 “Buys” with an average target price of $1.40. Surely, that is testament enough for the counter?

Enough about Ezra, let’s focus more on the prospective listing, shall we? TRIYARDS is actually Ezra’s engineering and fabrication division, with particular specialisation in self-elevating units (SEUs) and platforms, offshore support vessels and specialised offshore equipment.

TRIYARDS' Saigon shipyard

In its introductory document, TRIYARDS reported an over three-fold increase in 1H12 revenue of US$115.3 million from 1H11’s US$31.4 million. TRIYARDS attributed this jump to the commencement of construction of the Lewek Constellation, a subsea construction vessel (SCV). In addition, TRIYARDS also said that during 1H12, there were eight vessels under construction while there were only four vessels under construction in 1H11. In terms of 1H12 earnings, TRIYARDS managed to turn a corner by registering US$14.5 million in net profits. This turnaround was in tandem with the higher revenue but was somewhat offset by higher financing costs owing to an increase in term loans taken up to finance working capital requirements.
(Scroll down further for an infographic on TRIYARDS listing and other statistics.)

In emailed statements for this article, TRIYARDS said that a major reason for listing TRIYARDS “is for the Company to pursue growth independently of Ezra. We believe that as TRIYARDS executes its strategy well, the investing public will appreciate and reward these efforts”. Both TRIYARDS and Ezra however did not hint at a possible entry price for TRIYARDS, post-introduction.

When asked about the one most important thing about the proposed exercise that management wanted to bring across to the retail investor, they said that “TRIYARDS is ready to make a greater mark on the industry. We (TRIYARDS) have a dynamic team with a distinctive record, who are dedicated to the purpose of delivering value to all stakeholders. We believe we are well placed to ride on the robust industry prospects”.

So, those are the words plucked directly from the tree. Will you take a bite out of it?

Simeon, an LSE graduate, is currently the editor of Aspire. He specialises on topics surrounding trading psychology, politics and macroeconomics.

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